ACOs That Lose Money

A few years back I highlighted how ACOs were failing but when does that stop bureaucracy?  At that time (2015) they had tons of excuses.  Here is one I highlighted back then:

  • Their experiences reflect that ACOs are still a new structure, and building a new payment and care model as complex as an ACO is not easy to roll out.

So, how is it going now?

The Medicare Shared Savings Program (MSSP) increased federal spending by $384 million between 2013 and 2016, according to an analysis from consulting firm Avalere Health — despite a 2010 estimate from the Congressional Budget Office that the program would save $1.7 billion over that time period.

At least they have no more excuses, right?  I’m kidding. They are actually still using the same ones:

“These results suggest that CBO’s initial projections may not have taken into account the time it takes for ACOs to gain experience with the program and to start to produce consistent savings,” Avalere noted.

It just goes to show you that when they are dealing with other people’s money, your tax dollars, that bureaucracy knows no bounds and can continue to bulls%t like nobody’s business.

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